The Wysocki Company Has Undertaken a Physical Count of Inventory

question 65

Essay

The Wysocki Company has undertaken a physical count of inventory on hand on December 31, 2015. The cost of the inventory on hand is $445,993.
Additional information follows:
1. Wysocki Company received goods costing $32,000 on January 2, 2019. The goods were shipped f.o.b. shipping point, and left the seller's business on December 30, 2018.
2. Wysocki Company received goods costing $40,000 on January 3, 2019. The goods were shipped f.o.b. destination, and left the seller's business on December 30, 2018.
3. Wysocki Company sold goods costing $20,000 on December 29, 2018. The goods were picked up by the common carrier on December 29 and shipped f.o.b. destination. The goods arrived on January 2, 2019. The retail price of the goods was $30,000.
4. Wysocki Company sold goods costing $30,000 on December 31, 2018. The goods were picked up by the common carrier on December 31 and shipped f.o.b. shipping point. The goods were not included in Wysocki's physical count at December 31, 2018. The goods arrived on January 4, 2019. The retail price of the goods was $60,000. Wysocki paid the shipping costs of $433 on December 31.
5. Wysocki Company was the consignee for some goods from Walmart. The goods cost Walmart $100,000 and had a retail price of $300,000. These goods were included in Wysocki's physical count on December 31, 2018 at the retail price.
6. Wysocki Company had some goods on consignment at Walmart. The goods cost $50,000 and had a retail price of $100,000. These goods were not included in Wysocki's physical count at December 31, 2018 because the goods were not on the company's premises.
7. Wysocki Company sold goods costing $22,000 on December 31, 2018. The goods were not picked up by the common carrier until January 2, 2019. The retail price of the goods was $42,000; the wholesale price was $33,000. The goods were included in the physical count at December 31, 2018. The terms of the sale were f.o.b. shipping point.
Required:
1. For each item listed above, indicate the amount and sign of the adjustment to the inventory balance at December 31, 2018. If no adjustment is required, for an item, enter 0.
2. Determine the correct amount of inventory for Wysocki Company at December 31, 2018.

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Definitions:

Major Milestones

Important events or stages in the life of a person or the development of a process that mark significant achievements or transitions.

Existing Schemas

Pre-existing mental structures or frameworks that help individuals organize and interpret information.

Adult Development

The psychological and physical changes that occur in individuals from early adulthood through old age.

Experience Conflicts

When an individual faces opposing demands, desires, or situations, leading to internal or external stress.